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Luzhou Bank CoHKSE:01983 -0.67%81 ROE % is 9.65% as of Dec. 2025, which is 5% below its 10-year median of 10.13. GuruFocus rates HKSE:01983 with a GF Score™ of 81/100 and a GF Value™ of HK$2.58 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,524 Banks companies, Luzhou Bank Co ranks better than 61.55% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Luzhou Bank Co's annualized net income for the quarter that ended in Dec. 2025 was HK$1,412 Mil. Luzhou Bank Co's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was HK$14,632 Mil. Therefore, Luzhou Bank Co's annualized ROE % for the quarter that ended in Dec. 2025 was 9.65%.
The historical rank and industry rank for Luzhou Bank Co's ROE % or its related term are showing as below:
HKSE:01983'
s ROE % Range Over the Past 10 Years
Min: 7.47 Med: 10.13 Max: 15.22
Current: 11.93
During the past 11 years, Luzhou Bank Co's highest ROE % was 15.22%. The lowest was 7.47%. And the median was 10.13%.
HKSE:01983's ROE % is ranked better than 61.55% of 1524
companies
in the Banks industry
Industry Median: 10.49
vs HKSE:01983: 11.93
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Luzhou Bank Co ROE % Related Terms
Luzhou Bank Co ROE % Historical Data
* Premium members only.
The historical data trend for Luzhou Bank Co's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Banks - Regional subindustry, Luzhou Bank Co's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Luzhou Bank Co ROE % vs Banks Industry
For the Banks industry and Financial Services sector, Luzhou Bank Co's ROE % distribution charts can be found below:
* The bar in red indicates where Luzhou Bank Co's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Luzhou Bank Co (HKSE:01983) has a ROE % of 9.65% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Luzhou Bank Co and its competitors. This is near median its historical median of 10.13. Over the past decade, Luzhou Bank Co's ROE % has ranged from 7.47 to 15.22. According to the industry distribution chart, Luzhou Bank Co ranks #586 out of 1524 companies in the Banks industry, placing it in the top 38.5%.
Is Luzhou Bank Co's ROE % too high?
Luzhou Bank Co's current ROE % of 9.65% is near median its 10-year median of 10.13. Over the past 10 years, this metric has ranged from a low of 7.47 to a high of 15.22. The Banks industry median ROE % is 10.49. Luzhou Bank Co's value of 9.65% is 8% below this industry median. Based on the distribution chart, Luzhou Bank Co ranks #586 out of 1524 companies in the Banks industry, which is above the industry midpoint. Overall, Luzhou Bank Co has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Luzhou Bank Co's ROE % compare to competitors?
According to the Banks industry distribution chart, Luzhou Bank Co ranks #586 out of 1524 companies for ROE %. This puts Luzhou Bank Co in the upper half of its industry. The industry median ROE % is 10.49. Luzhou Bank Co's value of 9.65% is 8% below this benchmark. Historically, Luzhou Bank Co's own ROE % has ranged from 7.47 to 15.22 over the past decade. While the company's 10-year median is 10.13 vs. the industry median of 10.49, Luzhou Bank Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Banks company?
The median ROE % among Banks companies is 10.49, based on 1,524 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Luzhou Bank Co's current ROE % of 9.65% is 8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Luzhou Bank Co and its competitors. For the Banks industry, the median ROE % is 10.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luzhou Bank Co's current ROE % is 9.65%, which is near median its own 10-year median of 10.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luzhou Bank Co stock overvalued right now?
Based on GuruFocus' analysis, Luzhou Bank Co (HKSE:01983) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$2.58, compared to a current price of HK$2.22 — trading 14.1% below its estimated fair value. The current ROE % is 9.65%, which is near median its 10-year median of 10.13 and 8% below the Banks industry median of 10.49. Luzhou Bank Co's overall GF Score™ is 81/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Luzhou Bank Co (HKSE:01983), the current ROE % is 9.65% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Luzhou Bank Co (HKSE:01983) Overvalued in 2026?
Based on GuruFocus' analysis, Luzhou Bank Co stock appears to be undervalued.
The current stock price of HK$2.22 is trading 14.1% below its estimated GF Value™ of HK$2.58.
GuruFocus considers Luzhou Bank Co to be Modestly Undervalued.
Key valuation signals for HKSE:01983:
ROE %: 9.65% (near median its 10-year median of 10.13)
GF Value™: HK$2.58 vs. price of HK$2.22 (14.1% below fair value)
Industry Position: 8% below the Banks median (#586 of 1524)
No single metric tells the full story. See the HKSE:01983 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luzhou Bank Co Ltd is a commercial bank in Luzhou, providing financial services to its customers. The company's services include deposits, loans, e-banking, interbank finance, investment and financial management, deposit business, convenience finance, phone banking, personal online banking, and mobile banking. The operating business segments are Corporate Banking, Retail Banking, Financial Markets, and Others. The majority of revenue is derived from the Corporate banking segment.
81GF Score
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